Investors deterred by costly loans<\/p>\n
SAMARINDA, East Kalimantan: The East Kalimantan provincial
\nadministration has offered investors almost 1 million hectares in
\nconcessions for palm oil plantations since 1998, but only 15
\npercent has been worked by them.<\/p>\n
Investors were reluctant to work the land due to the high rate
\nof local bank loan interest and the slow bureaucracy, said Ismet
\nBarabakh, head of the provincial plantation office.<\/p>\n
\"We have offered 867,000 hectares in concessions to domestic
\nand foreign investors but only 133,000 hectares have been worked
\nby them so far,\" he said.<\/p>\n
The 867,000 hectares are located in the nine regencies of the
\nprovince.<\/p>\n
Ismet did not go into detail regarding how many investors had
\ninjected funds to work the concessions.<\/p>\n
He went on to say that many other investors had expressed
\ninterest to work the land but had canceled their plans due to the
\nhigh rate of bank loan interest.<\/p>\n
\"These domestic investors put their plans on hold, because
\nlocal bank loan interest now stands at 16 percent to 18 percent.
\nIn Malaysia, in comparison, the interest rate is only 13
\npercent,\" he said.<\/p>\n
Meanwhile, foreign investors cited red tape and slow
\nIndonesian bureaucracy as the main factors that prevented them
\nfrom working the land, said Ismet. -- JP<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/investors-deterred-by-costly-loans-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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